BP considers a master limited partnership and IPO for its US pipeline assets

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BP has not disclosed any details on the valuation of the potential transaction (Source: Getty)

Rebecca Smith

BP is mulling a spin-off of some US pipeline assets in the US Gulf and Midwest in an initial public offering, the firm said tonight.

The company said in a statement that the assets being considered are crude oil, natural gas and refined product pipelines in the Midwest and on the US gulf coast.

The potential IPO would structure the assets as a master limited partnership, one often adopted for pipeline firms. BP said if it progresses with plans for an IPO, then the partnership, named BP Midstream Partners, would file a registration with the Securities and Exchange Commission in the second half of 2017.

If completed, BP would own the general partner of the master limited partnership, all of its incentive distribution rights and a majority of its limited partner interests.

The oil giant has not yet provided further details on the valuation of the potential transaction beyond its statement.

Royal Dutch Shell became the first industry major to offload some of its US pipelines in a master limited partnership in 2014.

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